Robert J. Fedor, Esq., L.L.C.

Tax Law Blog

Is your company at risk for an Affordable Care Act related audit?

Although the future of the Affordable Care Act may be uncertain, the bulk of the law’s new reporting requirements are still in effect. What’s more, even a modification or partial repeal of the ACA would likely not have retroactive effect. That means that companies may have valid fears about an ACA-related tax audit, at least for the foreseeable short-term.

To be fair, any audit would be preceded by an exchange notice from the health insurance marketplace, informing a company of its non-compliance one or more of the ACA’s rules. If a deficiency is confirmed, a company might be facing stiff penalties, amounting to potentially thousands of dollars.

An attorney can help you navigate IRS administrative appeals

Although a tax audit or investigation may arise from a genuine misunderstanding, it may not feel that way from the taxpayer’s perspective.

The process starts small, generally with an IRS audit notification and related correspondence. Next, the individual or business may turn over the tax returns for the years at issue. However, if a taxpayer is unable to provide proof that entries on the return are accurate, serious penalties and/or even criminal penalties could be implicated.

Planning to travel abroad? Better not have any tax debt!

Tax laws are always changing. And one of the new tax laws you may not have heard about has the potential to ground prospective travelers who plan to venture abroad.

In a bill signed into law late last year, the State Department has been given the power to revoke, deny or limit passports for anyone the Internal Revenue Service (IRS) certifies as having a delinquent tax debt of $50,000 or more. The law, entitled "Revocation or Denial of Passport in Case of Certain Tax Delinquencies," grants the IRS the ability to revoke the passport of any such taxpayer by sending certification of the debt to the State Department. The law went into effect January 1, 2016.

Penalties and interest: how they impact tax cases

There are many phrases that, when associated with taxes, bring about nightmarish thoughts in a taxpayer. Penalties and interest are two of these phrases, among many, that can cause people to think that their tax filing is in a lot of trouble. Knowing what these terms mean in relation to taxes is very important, so let's talk about penalties, interest and taxes.

First of all, penalties and interest will not apply in years where you are owed a refund. If you owe money to the Internal Revenue Service, though, then penalties and interest can be applied to your filing when you fail to pay. Depending on the situation, the financial consequences will vary.

Seeking relief from the IRS for a spouse’s tax mistakes

For couples who file taxes jointly, it isn’t enough to let a spouse take care of the taxes and sign on the dotted line when he or she is done. One very important reason for this: you can be held responsible for errors your spouse commits on a tax return. This can lead to fines and possibly other penalties, so it isn’t just a matter of getting a slap on the wrist and a reminder to pay better attention next time.

The IRS does recognize that there are some cases where a taxpayer is not actually responsible for tax errors committed by a spouse, at least to an extent, and there are several types of relief available for such spouses. Innocent spouse relief, for one, may be available to a taxpayer whose the spouse filed an incorrect tax return. For those who qualify, there is the possibility of relief from tax, interest and penalties. 

April 15 is not the only deadline taxpayers need to worry about

Tax season is in full swing. Many taxpayers in Ohio have already filed their state and federal income tax returns. For those who have not, the April 15 deadline is approaching quickly. The tax code is not a body of law easily deciphered, which is why many people seek the assistance of tax professionals to help them file.

True to the complicated nature of the code, April 15 is not the only deadline with which taxpayers need to concern themselves. We will highlight in this post a couple other notable dates.

Small businesses and owners frequently targeted by IRS

Small business owners often make many financial and personal sacrifices to ensure for the growth of their business. Starting a business is a complicated process and requires that an individual is not only knowledgeable about their specific market, products and services, but also about financial matters.

For small business owners who learn their company is the subject of an IRS audit, the process can be nerve wrecking. This is often especially true of companies that rely largely upon independent contractors to complete work or deal primarily in cash. In addition to reviewing a business' financial records and tax documents, a small business owner should also expect to have their personal financial and tax information scrutinized by IRS agents.

What happens if I can't repay my tax debt?

Individuals who fail to file or pay their taxes may do so for a number of reasons. For many, fear is a motivating factor. An individual may know that he or she simply isn't able to pay their tax debt. Afraid of the potential consequences that may result from filing one's taxes and not being able to pay the IRS tax bill, some individuals may cling to the hope that the IRS will somehow forget both they, and their tax debt, exists.

New Jersey reality stars headed to prison

Bravo's "Real Housewives" reality series has proven to be very lucrative for the network as the series has several casts in numerous cities and states. The New Jersey edition of the Housewives series has undoubtedly been one of the most conflict-ridden and therefore lucrative for the network.

Recently, the real life legal troubles of one New Jersey cast mate took center stage over any of the dramas playing out before cameras as Teresa Giudice and her husband Giuseppe, better known to viewers as Joe, were sentenced to serve time in federal prison.

Government report recommends changes to IRS' W-2 verification practices

Ohio residents who have filed an income tax refund, likely recall including information from and a copy of one or more W-2 forms. A W-2 is issued by an individual's employer and includes information related to an individual's gross income earnings and tax deductions. This information is crucial in determining how much a taxpayer owes in taxes. Likewise, W-2 information is also needed to assess whether a taxpayer is eligible to receive an IRS tax refund.